IFMR Capital, founded in 2008, bridges the gap between economically excluded businesses, households, and non-banking financial companies. Finances assisted by them include small business finance, agricultural finance and vehicle finance.
Talking about the progress, around 100+ NBFCs and more than 25 million end borrowers have been assisted by IFMR Capital in past eight years. The progress of the company will be further accelerated as Eight Roads Ventures, the proprietary investment arm of Fidelity International Limited has today announced to invest up to $25 million in the firm.
The fund raise would essentially be used in the expansion of Chennai-based IFMR Capital. The expansion would lead to facilitation of debt financing in new products and sectors.
Commenting on the investment, Kshama Fernandes, MD and CEO, IFMR Capital said,
IFMR Capital helps connect high-quality financial institutions working with underserved segments to debt capital markets. These segments are largely catered to by specialized NBFCs who often find it difficult to raise capital. As investors with a deep understanding of these sectors, we underwrite risk and connect these originators to the right pools of capital, enabling them to grow in a sustainable manner.
We are excited to partner with Eight Roads Ventures and leverage its deep knowledge of the financial services sector to foray into new sectors and develop innovative products that will further serve the needs of our partner originators.
Further shining light on the deal, it involves a few key points. Firstly, Leapfrog, an existing investor in IFMR Capital has partially sold its stake in the company. Secondly,Kabir Narang, partner and Head of Technology & Financial Services at Eight Roads Ventures India will join the Board of IFMR Capital.
Michael Fernandes, partner at Leapfrog Investments remarked,
We are delighted to be part of IFMR Capital’s rapid growth story. This inspiring story of both profit and purpose proves that meeting the need for financial inclusion in India is a compelling investment proposition.
Three domestic funds have been successfully launched by IFMR Capital providing mid-term to long-term debt financing. In India, IFMR Capital is serving as an important credit channel especially in areas where there is a lack of access to financial institutions.